Creating Shortages

Published on June 24, 2024 by Premium

Higher interest rates appear to be negatively impacting the supply of housing and paradoxically pushing the achievement of the 2% inflation target further into the future. The last mile of above target inflation is largely due to elevated shelter inflation, which remains above its pre-pandemic pace. Higher interest rates may be decreasing the supply of housing even as the demand for housing is increasing from millennials and migrants. Market pricing and Fed balance sheet policy […]

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